EU Cancels Meetings.. Default Deadline Arrives
This is just out and there isn’t a lot of details but markets are sure to react in late US trading and Asian markets in the morning.
Finance ministers today cancelled a Brussels meeting slated for tomorrow and will hold a teleconference instead to persuade Greece to do more to clinch an aid package worth EUR130 billion along with some EUR100 billion of debt relief from private bondholders.
“I did not yet receive the required political assurances from the leaders of the Greek coalition parties on the implementation of the program,” Luxembourg prime minister Jean-Claude Juncker, euro group president, said in a statement today.
Mr Juncker said he was still awaiting written undertakings from Greek party leaders on pushing through with the austerity package of pay, pension and job cuts – which parliament passed yesterday.
He also pressed for “further technical work” on Greek budget cuts.
Earlier today, there was muted reaction on stock markets today to rating agency Moody’s downgrade of six European countries.
Moody’s yesterday cut the rating of six countries, including Italy, Spain and Portugal, citing growing risks from Europe’s debt crisis and warned it may cut the AAA ratings of France, the United Kingdom and Austria.
Tensions between Athens and other European capitals have hit new highs this week. While the European Union is officially still warning of the far-reaching dangers of a disorderly default by Greece, some politicians have in recent weeks downplayed the effects of such an event.
While the Parliament in Athens faced down violent protests over the weekend to approve a far-reaching new austerity package, the cabinet of ministers remained locked in talks Tuesday evening over how to save an extra EUR325 million demanded last week by the eurozone.This number keeps climbing out of the reach of the Greeks as revenues continue to fall, while debt mounts.
Several finance ministers also want assurances from the leaders of Greece’s two main political parties that they will implement the promised spending cuts and reforms after national elections expected for April. That demand is especially tenuous, with some commentators questioning whether it undermines democracy in Greece. There are also questions of legalities, with the many parliament members force to resign over dissagreements with the austerity measures.
Juncker said neither of these demands had been met in time for the meeting to go ahead.
Originally posted here
